Understanding a 700 credit score
MoneySuperMarket explains what your borrowing options are if you have 700 credit score.
Key takeaways
Equifax and TransUnion both categorise a score of 700 as a good credit score
Good credit score means you'll easily get approved for credit products and lower interest rates and higher credit limits are likely
Regularly monitoring your credit score helps you stay informed and plan accordingly
Is 700 a good credit score?
Depending on the credit reference agency you use to check your credit score, 700 could be a good credit score.
The three main credit rating agencies (CRAs) use different ranges when determining credit scores. A 700 credit score is categorised as excellent by TransUnion and that’s the credit scoring system our Credit Monitor service uses.
The table below explains where a 700 credit score sits with the main credit reference agencies:
Credit reference agency | A 700 credit score with them is | Their credit score scale |
|---|---|---|
Experian | Poor | 0-999 |
Equifax | Very Good | 0-1000 |
TransUnion | Excellent | 0-710 |
Will I eligible for a credit card or a loan with a 700 credit score?
Equifax and TransUnion both categorise a score of 700 as a good credit score, with the latter viewing it as excellent. This means you’ll be easily approved for a credit card or loan. Your high credit score will give you more choices when it comes to borrowing and you’ll likely be offered lower interest rates and even a higher credit limit.
However, if your Experian credit score is 700, this places you in the ‘poor’ credit category, meaning you may be eligible for credit products but you won’t benefit from the best rates. If you have bad credit, there are specialist lenders who lend to people with your type of credit history and offer loans and credit cards to people with bad credit.
Why do I have a 700 credit score?
Depending on which CRA has shown your credit score as 700, this could either be the result of good or bad financial habits.
If your 700 credit score is with Equifax and TransUnion, this is a strong credit score and likely the result of:
History of on-time payments: You’ve built up a solid credit history of always making your payments and have been rewarded with a good credit rating because of it.
Low credit utilisation: You keep how much of your credit limit you use to a minimum. Using less than 30% of your credit limit is viewed favourably by lenders. So, for example, if your credit limit is £1000 and you don’t go over £300, this will keep your credit utilisation low and boost your credit rating.
Built up credit over a long time: If you’ve been using credit for many years and consistently made your payments, this will bolster your credit rating, as lenders have proof that you’re a reliable lender.
If your 700 credit score is with Experian, this is a ‘poor’ credit score and might be due to:
No or little credit history: You may have never used credit before because you’ve recently turned 18 or never had a reason to. Your lack of credit history will bring your credit score down because lenders don’t have much to base your creditworthiness on.
Missed payments: The main premise of being creditworthy is showing you can be trusted to pay back money you’ve borrowed. If you’ve repeatedly missed payments, then lenders will view you as higher risk and this will hurt your credit score.
Apply for credit too often: Every time you apply for credit, this leaves a hard inquiry on your credit file which will lower your credit score. The effects of a hard inquiry will fade over time, but making multiple credit applications in a short space of time will increase the harm to your credit rating.
How long will it take for my 700 credit score to improve?
Improving your credit score can take some time. However, if your 700 credit score is perceived as very good or better, then it’ll take less time for your credit score to rise because you’re not starting from a bad credit history.
If your 700 credit score is with Experian, then you have a poor credit rating which won’t be fixed overnight. Think of repairing your credit score as a long-term goal: it won’t happen instantly, but the results are worth it.
Will my credit score fall if I regularly check it?
No, your credit score won’t be hurt if you check it often. If you check your credit score with Credit Monitor, your score will remain unaffected, as we use a ‘soft search’ which lenders won’t be able to see. It’s good to keep up with your credit score, so you can find out what products you’re likely to be eligible for and if you need to maintain or improve your credit rating.
What is the highest credit score possible?
The highest credit score you can get will depend on which credit reference agency you’re checking your score with.
The best possible credit rating with Equifax will be 1000, for Experian it’s 999 and TransUnion’s highest score is 710.
Can I get a mortgage with a 700 credit score?
Yes, you can get a mortgage with a 700 credit score. The ease of approval with a 700 credit score will determine on the credit reference agency who has given you the rating.
A 700 credit score is rated positively by Equifax and TransUnion and this means you’ll be offered more competitive rates when applying for a mortgage.
However, if your 700 credit score is with Experian then you have a poor credit rating. There are specialist lenders who cater to borrowers in your situation but be aware you’ll face higher interest rates and might need a larger deposit.
Other useful guides
Credit can be complicated and we’re here to help you understand it. We have a range of guides that explain credit scores, including:
Keep an eye your credit score with our Credit Monitor service
You can keep up to date with your credit score with our free Credit Monitor service. Using Credit Monitor won’t negatively impact your credit score. We’ll send you relevant hints and tips to help you preserve or repair your credit rating.
